MarketsFarm — With excessive moisture in the eastern Prairies and persistent drought in southern Alberta, uncertainty over new-crop grain production is keeping some caution in the feed market.
The spot market is relatively steady as the market waits for a better picture on this year’s growing conditions. “A lot of the feedlots have all the corn they need,” said Mike Fleischhauer of Eagle Commodities at Lethbridge, Alta.
Feeders were well covered with corn from the U.S. for the time being, he said, as many had forward-booked more supplies than usual ahead of the short-lived work stoppage at Canadian Pacific Railway in March.
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That stoppage only lasted a day and a half, but now there are “lots of piles of corn around.”
The corn imports were necessitated by Canada’s drought in 2021 and resulting poor crops. Southern Alberta is still very dry, while seeding has been delayed in the eastern Prairies due to excessive moisture.
With some places too dry and others too wet, the uncertainty of Canadian barley production in 2022-23 has both sellers and buyers unwilling to commit too heavily, although Fleischhauer said there was some cautious forward-pricing going on.
Outside factors, such as the war in Ukraine and broader political issues, were also limiting the influence of the traditional supply/demand balance on the feed market, Fleischhauer said.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
